PDP Policies
Federal Registers
PDP Job Design
Internal Operating Procedures
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Appendix F
Appendix G
Appendix H
Appendix I
Appendix J
Glossary
 

APPENDIX E:
FAIR LABOR STANDARDS ACT COVERAGE

E-1. Introduction. The Fair Labor Standards Act (FLSA) provides for minimum standards for both wages and overtime entitlements, and delineates administrative procedures by which covered worktime must be compensated. The FLSA allows specified employees to be exempt from its overtime provisions. In general, employees who are not exempt from the FLSA must be compensated for all hours of work beyond their regular tour of duty at a rate equal to one and one-half times their hourly regular rate of pay.

E-2. Policy and Responsibilities.

  1. As part of the position classification process, managers with delegated classification authority will make the determination whether assigned employees are exempt or nonexempt from the FLSA overtime provision based on exemption criteria provided in 5 CFR part 551. Employees in some paybands under the demo project are clearly exempt or nonexempt. However, there are six paybands (DB-II, DE-II, DE-III, DJ-II, DK-II, DK-III) where employees can be either exempt or nonexempt. For those six paybands, managers will make the FLSA determinations on a case-by-case basis by comparing duties and responsibilities assigned against the OPM position classification standards and the FLSA criteria under 5 CFR part 551, summarized below.
  2. Exemption criteria will be narrowly construed to apply only to those employees who are clearly within the terms and spirit of the exemption. The burden of proof rests with the manager that makes the determination. All employees who clearly meet the criteria for exemption must be excepted.

E-3. Summary of 5 CFR part 551 criteria as it applies to the Demo Project Classification System:

  1. Employees properly classified in paybands DB-I, DE-I, DJ-I and DK-I are nonexempt in accordance with 5 CFR 551.203(a) because they are equivalent to GS-4 or below.
  2. Employees properly classified in paybands DB-III, DB-IV, DB-V, DE-IV, DJ-IV, DJ-V are exempt in accordance with 5 CFR 551.203 because they are equivalent to GS-12 or above.
  3. Employees properly classified in payband DJ-III are exempt in accordance with 5 CFR 551.203 because they are equivalent to GS-11 or above.
  4. Employees properly classified at DB-II, DE-II, DE-III, DJ-II, DK-II or DK-III who, by comparison to OPM Position Classification Standards, are equivalent to GS-5 through GS-10, are exempt only if they are an executive, administrative or professional employee as defined in 5 CFR 551.204, 551.205, or 551.206.
  5. Summary of 5 CFR part 551 definitions of executive, administrative and professional employees:

    (1) An "executive" employee is a supervisor or manager who regularly directs the work of at least three subordinate employees (excluding support employees) as their primary duty. In addition, for employees in DB-II, DE-II, DJ-II or DK-II who are equivalent to GS-5 or GS-6, 80 percent or more of the employees' worktime in a representative workweek must be spent on supervisory and closely related work.

    (2) An "administrative" employee is an advisor, assistant, or representative or management, or a specialist in a management or general business function or supporting service whose primary duty consisted of work that significantly affects the formulation or execution of management policies or programs or involves general management or business functions of supporting services of substantial importance to the organization serviced or involves substantial participation in the executive or administrative functions of a management official. The employee must perform office or other predominantly nonmanual work which is intellectual and varied in nature or of a specialized or technical nature that requires considerable special training, experience, and knowledge. The employee must frequently exercise discretion and independent judgment, under only general supervisor, in performing the normal day-to-day work. In addition, for employees in DB-II, DE-II, DJ-II or DK-II who are equivalent to GS-5 or GS-6, 80 percent or more of the employees' worktime in a representative workweek must be spent on administrative functions and work that is an essential part of those functions.

    (3) A "professional" employee is one whose primary duty consists of work that requires knowledge in a field of science or learning customarily and characteristically acquired through education or training that meets the requirements for a bachelor's or higher degree, with major study in or pertinent to the specialized field as distinguished from general education; or is performing work, comparable to that performed by professional employees on basis of specialized education or training and experience which has provided both theoretical and practical knowledge of the specialty, including knowledge of the specialty, including knowledge of related disciplines and of new development in the field. The work must be predominantly intellectual and varied in nature, requiring creative, analytical, evaluative or interpretative thought process for satisfactory performance. The employee must frequently exercise discretion and independent judgment, under only general supervision, in performing the normal day-to-day work. In addition, for employees in DB-II, DE-II, DJ-II, or DK-II who are equivalent to GS-5 or GS-6, 80 percent or more of the employees' worktime in a representative workweek must be spent in professional functions and work that is an essential part of those functions.